Impact Of Agricultural Insurance On Rural Residents’ Income

Since the 21 st century,in order to promote the smooth development of the work of "agriculture,rural areas and farmers",the country has issued 17 No.1 central document to guide the work,providing strong support for solving the problem of "agriculture,rural areas and farmers".The core of the "three rural issues" is actually to increase farmers’ income,and agricultural insurance promotes farmers’ income growth through mechanisms such as dispersing farmers’ risks and providing post disaster compensation,which has received great attention.With the proposal and implementation of the rural revitalization strategy,it is pointed out that financial services and financial guarantee funds should be appropriately tilted towards rural areas.Agricultural credit can provide financial support for agricultural production,thereby promoting the growth of farmers’ income.In theory,promoting agricultural insurance can help smooth out fluctuations in farmers’ income,promote the development of agricultural credit,and further strengthen the income increase effect of agricultural credit.Based on this,a mechanism of "agricultural insurance →agricultural credit → farmers’ income" is formed.This paper conducts corresponding research based on the perspective of mesomeric effect of agricultural credit.First,we collate panel data of 31 provinces in China from 2009 to 2020,and then use the fixed effect method and mesomeric effect to explore the effect of agricultural insurance on farmers’ income.In terms of specific research,the first step is to review and sort out the literature and materials already obtained by domestic and foreign scholars in this field,in order to clarify the conceptual viewpoints and establish the theoretical basis of this study.Secondly,it elaborates the development of agricultural insurance and agricultural credit,identifies the role of agricultural insurance in the transmission mechanism of farmers’ income,then puts forward hypotheses and verifies the hypotheses,clarifies the positive effect of agricultural insurance on farmers’ income,as well as the mesomeric effect of agricultural credit in promoting farmers’ income growth in agricultural insurance,and further analyzes the impact of agricultural insurance on farmers’ income The heterogeneity of income levels and sources.Finally,based on the previous research,the conclusion of this article is drawn and targeted policy recommendations are proposed.The research conclusion can be summarized and elaborated as follows:(1)The development of agricultural insurance can positively affect farmers’ income,and the depth and density of agricultural insurance can promote the improvement of farmers’ income level.(2)The development of agricultural credit in agricultural insurance has a significant mediating effect on farmers’ income,verifying the existence of the impact mechanism of "agricultural insurance → agricultural credit → farmers’ income".(3)Agricultural insurance has a heterogeneous effect on farmers’ income from three aspects: region,income level,and income source.The positive impact of agricultural insurance on farmers’ income is most significant in the eastern region and samples with high income levels,and it is significant at the level of 1% for farmers’ operating income and wage income.Finally,based on the above research conclusions,this article proposes the following policy recommendations:(1)Improve the supply side level of agricultural insurance and enhance the guarantee capacity of agricultural insurance.(2)Promote rural financial policy reform and improve the rural financial system.(2)Accelerate the construction of infrastructure for agricultural insurance and agricultural credit,and establish a formal linkage mechanism between agricultural insurance and agricultural credit.